Demonetisation, 3 years on: A look at impact on key sectors of the economy
On November 8, 2016, Prime Minister Narendra Modi announced to the nation that Rs 500 and Rs 1,000 currency notes — 86 per cent of all currency notes in circulation in value — would cease to be legal tender. The stated objectives were unearthing black money, cracking down on counterfeit currency, and choking terror financing. Unsurprisingly, there were strong reactions both in favour of and against the unprecedented move, which would come to be known as ‘ demonetisation ’ or ‘ note ban ’. While some hailed it as a courageous step against impropriety that was hurting the economy, others saw the move itself as disastrous for the economy. In the months that followed, even as reports suggested that the government had not come any close to achieving its stated objectives, the government was seen patting itself on the back for the country’s move towards becoming a ‘cashless’ economy, or, as the PM said, a ‘less-cash’ economy. Many called this an act of ‘moving goal posts’ and rushe...